Changpeng Zhao said governments could tokenize gold, minerals, and water to unlock liquidity.
He predicted growth in blockchain-based prediction markets tied to elections and global events.
CZ noted unexpected sectors may emerge as crypto capital and builders shift focus.
During a recent Binance Square AMA, Changpeng Zhao, CZ, shared insights on where capital and builder focus may move in crypto. He highlighted Real World Asset (RWA) tokenization as a key area, noting governments could tokenize resources like gold, rare minerals, and water. CZ added that prediction markets around major global events could also see significant growth.
Rising Interest in Real-World Asset Tokenization
CZ explained that tokenizing tangible assets allows countries to access immediate funding while delivering the physical asset later. “If you tokenize an asset, you create an economy around that asset class,” he said.
He cited examples such as untapped gold reserves, rare earth minerals, high-quality water, and salt. Notably, he mentioned drinking water can be more expensive than oil per liter, making it a potentially lucrative tokenization candidate.
He emphasized that governments are increasingly exploring ways to integrate these assets into blockchain ecosystems, building infrastructure and economic activity around previously illiquid resources. Tokenized assets could enable countries to fund infrastructure projects efficiently while creating new financial markets.
Prediction Markets to Gain Traction Around Global Events
In addition to RWAs, CZ predicted a surge in prediction markets. He noted that events like the World Cup, elections, and other global happenings attract high interest for hedging and speculative opportunities.
According to CZ, these markets are relatively predictable compared to other emerging crypto sectors but can still generate unexpected surges in participation. He emphasized that major events offer opportunities to test and expand blockchain-based prediction mechanisms while engaging wider audiences.
Expecting the Unexpected in Crypto Innovation
CZ also cautioned that long-term trends are inherently uncertain. “There are usually some things that come out that you never imagine, and that becomes really hot,” he said. While RWAs and prediction markets appear prominent now, unforeseen sectors could emerge, capturing investor and developer attention unexpectedly.
Overall, CZ’s comments signal a focus on tokenization of physical assets and event-driven markets as crypto builders and capital potentially pivot toward these innovative avenues.
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